The overall downward trend continues
Hello to all members of TradingView and my followers.
Considering that the movement of gold went exactly according to my previous idea, first, I will tell you a series of news centered on gold, and then I will do technical analysis on gold.
The gold market is seeing its worst weekly performance in two months as its 4% decline matched a similar move in May.
According to the latest Kitco News weekly gold survey, mixed sentiment in the precious metals markets does not indicate a significant recovery anytime soon, even if analysts argue that gold prices have fallen too far.
Gold struggled this week as investors expected the Federal Reserve to raise interest rates sharply to ease rising inflationary pressures. According to the CME FedWatch Tool, markets have fully priced in a 75-point move for later this month.
According to some analysts, the US central bank's aggressive stance has pushed the US dollar to a 20-year high, which alone has pushed the price of gold to test long-term support at $1,730 an ounce.
Although there is significant bearish sentiment in the market, some analysts have said they are looking for a bounce in the near term.
"Gold is generally bearish but approaching significant exhaustion levels that could trigger a correction/uptrend," said Michael Moore, founder of Moor Analytics. "We've broken below several bearish structures, but we're probably on the last structural extension of the highs to the downside."
Colin Cieszynski, the chief market strategist at SIA Wealth Management, also sees potential for at least a short-term bounce in gold.
He said: "The recent decline in gold prices has been largely driven by the appreciation of the US dollar, which is technically overbought. Given that the RSI is oversold, gold may have reason to find some support. be short-term."
That being said, with a lot of capital heading to the US looking for a defensive haven, gold could continue to struggle against the US dollar.
He added: Although gold can face problems against the US dollar, it remains strong against other major world currencies.
15 Wall Street analysts participated in the Kitco News Gold Poll this week. Among participants, six analysts, or 40 percent, said they were bullish on gold in the short term. Meanwhile, five analysts (33%) were bearish on gold, and four (27%) were neutral on the precious metal next week.
Meanwhile, 484 votes were cast in Kitco's public online poll. Of these, 204 people, or 42%, were looking for an increase in the price of gold in the next week. Another 183, or 38 percent, said a reduction, while 97 voters, or 20 percent, were neutral in the short term.
Although sentiment among retail investors remains low, participation rates are also low, indicating very little interest in the precious metal in this volatile environment.
Although gold has room to decline in the short term, some analysts say there is still acceptable support in the market.
Phillip Streible, the chief market strategist at Blue Line Futures, said the sell-off could be seen as a capitulation, as many long positions have exited the market.
"There's been a lot of buying volume this week, and we don't think there's going to be a lot of sellers in the market. I don't think we're going to see prices go below $1,700," he said.
However, other analysts are significantly bearish even if the selling pressure breaks.
"The general sentiment for gold is still bearish, but it's hard for me to go back," he said. "I'm looking at $1,650, and if that move happens, I expect $1,200 after that," he said.
For many analysts, the market needs to see a change in US monetary policy if gold is to regain its luster. The Fed's expected 75 basis point move for gold remains challenging.
Some analysts and economists noted that the latest employment report, which showed the economy added 372,000 jobs last month, bolstered the rate cut. The market hopes the US central bank can engineer a soft landing as interest rates continue to rise.
Technical Analysis:
Analysis of the trend in the four-hour time frame shows that the downward channel of gold is still in place. A break of the short-term support range of $1,730 would be a warning for further declines to $1,695.
Gold prices may see a short-term bounce next week, but the overall bearish trend remains.
If it is helpful to you, please like it. If you have a comment, I'll be happy to know. Respectfully.
Considering that the movement of gold went exactly according to my previous idea, first, I will tell you a series of news centered on gold, and then I will do technical analysis on gold.
The gold market is seeing its worst weekly performance in two months as its 4% decline matched a similar move in May.
According to the latest Kitco News weekly gold survey, mixed sentiment in the precious metals markets does not indicate a significant recovery anytime soon, even if analysts argue that gold prices have fallen too far.
Gold struggled this week as investors expected the Federal Reserve to raise interest rates sharply to ease rising inflationary pressures. According to the CME FedWatch Tool, markets have fully priced in a 75-point move for later this month.
According to some analysts, the US central bank's aggressive stance has pushed the US dollar to a 20-year high, which alone has pushed the price of gold to test long-term support at $1,730 an ounce.
Although there is significant bearish sentiment in the market, some analysts have said they are looking for a bounce in the near term.
"Gold is generally bearish but approaching significant exhaustion levels that could trigger a correction/uptrend," said Michael Moore, founder of Moor Analytics. "We've broken below several bearish structures, but we're probably on the last structural extension of the highs to the downside."
Colin Cieszynski, the chief market strategist at SIA Wealth Management, also sees potential for at least a short-term bounce in gold.
He said: "The recent decline in gold prices has been largely driven by the appreciation of the US dollar, which is technically overbought. Given that the RSI is oversold, gold may have reason to find some support. be short-term."
That being said, with a lot of capital heading to the US looking for a defensive haven, gold could continue to struggle against the US dollar.
He added: Although gold can face problems against the US dollar, it remains strong against other major world currencies.
15 Wall Street analysts participated in the Kitco News Gold Poll this week. Among participants, six analysts, or 40 percent, said they were bullish on gold in the short term. Meanwhile, five analysts (33%) were bearish on gold, and four (27%) were neutral on the precious metal next week.
Meanwhile, 484 votes were cast in Kitco's public online poll. Of these, 204 people, or 42%, were looking for an increase in the price of gold in the next week. Another 183, or 38 percent, said a reduction, while 97 voters, or 20 percent, were neutral in the short term.
Although sentiment among retail investors remains low, participation rates are also low, indicating very little interest in the precious metal in this volatile environment.
Although gold has room to decline in the short term, some analysts say there is still acceptable support in the market.
Phillip Streible, the chief market strategist at Blue Line Futures, said the sell-off could be seen as a capitulation, as many long positions have exited the market.
"There's been a lot of buying volume this week, and we don't think there's going to be a lot of sellers in the market. I don't think we're going to see prices go below $1,700," he said.
However, other analysts are significantly bearish even if the selling pressure breaks.
"The general sentiment for gold is still bearish, but it's hard for me to go back," he said. "I'm looking at $1,650, and if that move happens, I expect $1,200 after that," he said.
For many analysts, the market needs to see a change in US monetary policy if gold is to regain its luster. The Fed's expected 75 basis point move for gold remains challenging.
Some analysts and economists noted that the latest employment report, which showed the economy added 372,000 jobs last month, bolstered the rate cut. The market hopes the US central bank can engineer a soft landing as interest rates continue to rise.
Technical Analysis:
Analysis of the trend in the four-hour time frame shows that the downward channel of gold is still in place. A break of the short-term support range of $1,730 would be a warning for further declines to $1,695.
Gold prices may see a short-term bounce next week, but the overall bearish trend remains.
If it is helpful to you, please like it. If you have a comment, I'll be happy to know. Respectfully.
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